Highlights
With only 1 month to go in fiscal 2017, the government's deficit is running 8.8 percent above fiscal 2016 at $673.7 billion. Spending is up 3.1 percent this year including a 6.5 percent increase in net interest and a 3.1 percent gain for Security Security. Spending on Medicare is down 1.1 percent with defense spending up 1.5 percent. Receipts are up 1.9 percent led by a 2.6 percent increase in individual taxes including a 0.2 percent increase in corporate taxes. The monthly deficit for August totaled $107.7 billion.

Recent History Of This Indicator
Ten months into fiscal year 2017, the government's deficit in July was tracking 10.6 percent above fiscal year 2016. The spending side is where the red ink lies, hit by increases in Social Security payments and also net interest payments. Higher receipts, led by individual income taxes, have only been a partial offset to the rise in spending. The Econoday consensus for August's Treasury budget is calling for a $115.0 billion deficit.

Definition
The U.S. Treasury releases a monthly account of the surplus or deficit of the federal government. Changes in the budget balance reflect Federal policy on spending and taxation. The government's fiscal year begins in October.
Why Investors Care

The federal budget balance is not seasonally adjusted. Consequently, it is useful to compare the current month's budget deficit or surplus to the same month for a couple of years. Some months are known to have large surpluses because quarterly estimated tax payments are received by the government.Data Source: Haver Analytics